The announced doubling of the resource to 540Mt suggests this stock should be trading at around 60c (on a comparable sales value of 30c/t low grade magnetite in the ground).
All that seems to be holding it back are expectations of a resumption of drilling - Flissy indicated that's "imminent" - and putting in place a Chinese partner. Forgetting that the latter will dilute ownership, past indications from the company are that they will take their own sweet time to find the right partner, ie, they see no panic.
ROY has just offloaded it's USA U properties, they weren't bringing any value anyway, and have said they will offload the other properties (Midwest and Pilbara iron) when they solicit a reasonable price.
The PFS is expected out by the end of the year, at which time the resource is likely to be north of the 700Mt ROY have targeted in their current, interrupted, drilling campaign. Looking at the results to date, and their oft stated 100Mt per kilometre of strike, a one billion tonne resource is on the cards.
This all looks like a solid progression to value for the share holders. Get it whilst it's this cheap!
MFE Price at posting:
18.5¢ Sentiment: LT Buy Disclosure: Held
